Buyers struggle to find home under ₹1 cr in Hyderabad, Real Estate News, ET RealEstate
HYDERABAD: Are homes in Hyderabad getting out of reach for the city’s middle class? Yes, say prospective buyers, especially those eyeing a property in areas along the western corridor. They rue how even a budget of Rs 1 crore is now not enough to get them their dream home as even average developers are charging upwards of that.
Industry insiders believe that prices will not fall until development is decentralised to other parts of the city like north and east Hyderabad.
Ajay Kumar, who moved from Bengaluru to Hyderabad and works as a delivery director in an IT company, said that the prices of properties in Hyderabad are not justified for the amenities which are provided. “I’ve lived in Bengaluru for 17 years and did not see such prices,” said Kumar who is on the lookout for villas, as he believes land will be a better investment for the future.
Krishna Kanth, a young software employee and a native of Karimnagar said that he cannot afford any house in Hyderabad anymore. “I have a budget of Rs 60 to Rs 70 lakh. That’s how much I can stretch it, but developers are straight up telling me that they have nothing to offer. How will anyone from other districts in Telangana ever settle in the state capital?”
Another prospective buyer Srinivas Goud said, “Today a new home buyer should shell out at least Rs 2.5 crore for a decent house. This is not something that I can afford.”
Similarly, another software professional Naveen Reddy said there are several conditions attached to the purchase of an apartment. “We are asked to pay exorbitant prices for development of amenities, for maintenance, and even for two car parking spaces. In one property, they made it compulsory to buy two parking slots for one three-bedroom apartment. Why should I be coerced into taking two car parking areas if I plan to have just one car?”
V Rajasekhar Reddy, president of the Confederation of Real Estate Developers Association of India (CREDAI – Hyderabad) said in the wake of high real estate prices, focus should move from the west to the east. “The present real estate market after elections is waiting for new policies from the new government. For now, expanding the HMDA, improving metro connectivity for the core city are some ideas to change the market scenario. Investors are also waiting for new opportunities.”
Developers on the other hand justify the trend by calling it an ‘open free market,’ and that market forces drive the prices. A developer in western Hyderabad said, “Our clientele is ‘India 1,’ or those customers who want the best of the best and are willing to pay for it. We focus on giving them the very best of the location, amenities and return on investment in the future, which justifies our prices.”
But prospective buyers continue to look for cheap and affordable units. Krishna Manohar, looking for a villa said, “We had a budget of up to Rs 1.5 crore. Now we have almost doubled it, but still the options we are given are so far away from the city. Development will take almost a decade to reach there,” he said.
